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Lynas restarts production in Malaysia, files appeal against new permit condition

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Lynas restarts production in Malaysia, files appeal against new permit condition

Lynas Corp. Ltd. unit Lynas Malaysia restarted production after a temporary halt in December 2018 that reduced neodymium and praseodymium production in the fourth quarter by about 400 tonnes.

Additionally, the subsidiary filed an appeal against the decision by Malaysia's Ministry of Energy, Science, Technology, Environment and Climate Change to impose a new condition for the permit renewal of the company's Gebeng rare earths plant, which is due Sept. 2.

The new condition requires the company to export the water leach purification residue out of Malaysia before Sept. 2.

In early December 2018, Lynas said the decision is "inconsistent with the review committee's recommendations and is contrary to international best practice."

CEO Amanda Lacaze said Lynas is still looking to resolve the matter through discussions with the Malaysian government, but the appeal was filed to comply with a 30-day period for initial appeals.

"Key issues in relation to the new condition include the availability of regulatory approvals, the proposed timetable for export of [water leach purification] residue and the significant cost," Lacaze said.